While some people see annuities as life savers in retirement, for others it can seem like a “four letter word,” according to Santa Clarita financial advisor Arif Halaby, host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220.

“There’s some old fashioned annuities out there and there’s some old ways that they used to do it,” said Halaby, a Certified Estate Planner. “I’m not a fan of those, where you give them your money and they give you a payment, and if you die, that’s it– they take all your money. That is not today’s annuities.”

Show Host Arif M. Halaby

Halaby emphasized the importance of understanding that every financial product in existence has a purpose when used correctly.

“An annuity can be part of your retirement income without giving up the principal, without giving up the big chunk of money that you’ve earned your entire life,” he explained, adding that the most important part of planning for retirement is ensuring that funds don’t run out.

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The first step is to look at multiple sources of income that could be set up to mirror the way most people receive paychecks before they retire.

“We spend monthly paychecks is really how it breaks down in retirement,” said Jeff Girard, Halaby’s co-host. “We were used to going to work, trading our time for money, and maybe you got paid every week or every two weeks or even once a month. So why would that change just because you stopped working?”

It may not always be possible to receive payments from annuities on the same schedule a person is used to, but Girard added there are no “hard and fast” rules saying it’s not allowed.

“An annuity really is just a stream of payments coming to you,” Halaby’s co-host explained. “You have an arrangement with a company that holds your money and they dole out the payments, giving you some of your money back and the interest for the privilege of having your money. And if it’s done right, you can have it last for the rest of your life.”

“Remember this, your family’s future depends on you making decisions that are not built on risk,” Halaby added. “Your family is not counting on you to take huge risks and win, they’re counting on you not losing and not making big mistakes.”

To learn more from Arif Halaby about the different types of annuities and their various benefits and features, listen to the full podcast by clicking here.

Total Financial Solutions offers assistance with preparing for retirement and financial planning in Santa Clarita and the surrounding valleys. Santa Clarita financial advisor Arif M. Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners from Santa Clarita financial planning tips and guidance for dealing with today’s ever-changing financial needs.  

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